Monday, October 31, 2016

Finance: Another Big Merger in Geothermal Services Industry

General Electric Co. said on Monday it would merge its oil and gas business with Baker Hughes Inc., creating the world's No. 2 oilfield services provider, amid signs that firmer oil prices are encouraging a recovery in the industry.

The deal will vault the combined company ahead of Halliburton Co in terms of revenue. Baker Hughes had planned to merge with Halliburton in a deal valued at $34.6 billion when it was announced in November 2014, but that deal fell through in May due to regulatory concerns.

The tie-up will also put GE and Baker Hughes in a stronger position to challenge market leader Schlumberger, which had revenue of about $35 billion in 2015.